LIC & LIT Listed Investment Companies (LICs) in 2017

Many thanks Monk and I get this.... An observation which seems to support your comments.
Even though there are 14 million options being sought by buyers this morning and only half a million on offer: The vast majority of buyers are at prices well below the current price.
Good stuff and much appreciated.

 

Hi Rick65,orice of options will always be below the share price,if I take your meaning correctly here,this morning is 0.27c down from yesterday.You could sell them for a small gain,then hope share price drops way down then you can buy then if you wanted more,alternately if share price jumps then you can exercise your options still at $1.18 if you hold the option.

 

Yes spot on.

 

Seems like a reasonable rule of thumb for direct shares dividend suspension but for quality LICs I see a missed dividend(s) as a buying opportunity. PMC got hammered at that time and gee I’m glad I took advantage of the buying opportunity.

Satayking, like you, I’d love a repeat of a similar buying opportunity again.

 

Any love on here for AMCIL (AMH)? Seems to be a hybrid between AFI and MIR (and run by the same people) investing in both large and small companies, with the smaller companies looking quite similar to those in MIR’s portfolio. But whilst MIR and AFI both trade at a premium, AMH is currently at an 8% discount. Relatively low MER and no performance fees. I guess people don’t rate their stock picking ability for the larger companies?

 

From memory it’s pretty much the same stock pickers used by AFI / MIR / DJW. In theory AMH is the best ideas from AFI and MIR. However it’s more active and growth focused. Dividend reliability / consistency is not the main focus.

@ErYan I think may own (or did own) AMH. Care to comment please mate based on your experience with it?

 

Actually bought a parcel of these earlier this week for all the above reasons plus one of the directors recently bought a swag of them.

 

Sold at 0.029 and happy with that.

 

I've only recently discovered LICs so need to do a lot of reading but just a quick (probably silly) question..

Do people invest in LICs in a SMSF or do the additional fees make it less beneficial ??

My wife and I are going to set up a SMSF shortly, we were originally going to buy a property but are now thinking of sitting tight to assess options.. and I guess we good start buying some LICs in the meantime or even consider this as a LT option

 

Nothing wrong with LICs in a SMSF, a good investment is a good investment after all. Low tax environment will see you get an added bonus as in general LICs divs are fully franked.

 

And the more popular ones have dirt cheap fees. Around 0.12 to 0.16%.

 

Whatever one may say about LICs, they are not necessarily staid and boring - although SOL isn't classed as an LIC but is considered boring.

Acorn to acquire via share issues to SOL some of Sol's assets. Sol will have around 13% of Acorn. Announced on ASX this morning.

 

Yes. SOL has been very eager to increase it’s exposure to Funds Management and Technology Sector in recent times.

 

Me too but at a lowly 0.028,I must get some trading tips from you.

 

Thanks Nodrog and Hodor, will def do more reading to try and learn more about them!

 

LICs: Traders versus investors for tax purposes - Cuffelinks

 

That I would not advise....................

 

I have been stalking the old Somersoft forums of late reading up on ppls buying behaviours in down turns and their emotions and behavioural aspects of investing and came across a few nuggets of wisdom from the falcon!

"I know a couple of ppl with very large stock portfolios that simply bought and kept buying a reasonably diversified portfolio of industrials over the long term, and never sold during the downturns but bought more stock. It's not rocket science."

Also "dollar cost averaging combined with some dry powder and the confidence to buy in major corrections will provide out performance, the second bit is difficult to achieve when the talking heads are claiming the sky is falling, so step 1 set up a dca program and never ever mess with it, and step 2 educate yourself as to how markets work and a history of financial market cycles as this will help you on the second part".

Quality posts right there people's!

 

Page 7 of today's AFR has an advertisement by Wilson Asset Management looking for a Global Equities Analyst to help in the search for 'undervalued international growth companies'.. Sounds like an interesting gig for someone with the right skill set.

 

https://dpsi7pmz5b6vt.cloudfront.ne.../2907/Monthly_LIC_Report_14_December_2017.pdf

As if Wilson isn’t already getting high enough fees: